WEBVTT - Smoke Blankets Northeast; Trump Gets Target Letter 0:00:01.520 --> 0:00:04.840 From the Bloomberg Interactive Brokers Studios. This is Bloomberg day 0:00:04.880 --> 0:00:06.720 Break for Thursday, June eighth. 0:00:06.760 --> 0:00:10.399 Coming up today, Smoke blankets the Northeast and it could 0:00:10.520 --> 0:00:11.840 last a few more days. 0:00:12.240 --> 0:00:15.720 Former President Donald Trump learns he's under criminal investigation. 0:00:15.960 --> 0:00:19.079 President Biden vetos a bill aimed at killing his student 0:00:19.160 --> 0:00:20.200 debt relief, and. 0:00:20.200 --> 0:00:23.040 We hear from Ray Delio and Brian Monahan at this 0:00:23.160 --> 0:00:25.480 year's a Bloomberg invest conference in New York. 0:00:25.640 --> 0:00:28.240 Germany blames Russia for the destruction of a dam in 0:00:28.280 --> 0:00:31.640 southern Ukraine, blast New York City Sue's thirty counties for 0:00:31.760 --> 0:00:35.519 blocking deals to How's migrants. I'm Michael Barnard Moore Ahead. 0:00:35.320 --> 0:00:38.040 I'm John stash Eward Sports. The Mets in Atlanta lost 0:00:38.080 --> 0:00:40.160 their fifth in the row. The Nuggets beat they hate 0:00:40.159 --> 0:00:42.680 and lead the NBA Finals two games to one. 0:00:43.720 --> 0:00:47.120 That's all straight Ahead on Bloomberg day Break, the Business 0:00:47.159 --> 0:00:49.640 news you need to sturn your day in just one 0:00:49.720 --> 0:00:54.200 fifteen minute podcast each morning on Apples, Spotify, the Bloomberg 0:00:54.240 --> 0:00:56.920 Business app, and everywhere you get your podcasts. 0:01:00.000 --> 0:01:01.280 Good morning, I'm Nathan. 0:01:01.040 --> 0:01:04.000 Hager and I'm Garen Moscow. Here are the stories We're 0:01:04.040 --> 0:01:05.240 following today, we. 0:01:05.200 --> 0:01:08.080 Want to get an update first on the smoky blanket 0:01:08.280 --> 0:01:11.680 billowing across the East coast. It could stay with us 0:01:12.040 --> 0:01:14.920 a few more days. Let's get the details from Bloomberg's 0:01:14.959 --> 0:01:16.640 John Tucker, John and Nathan. 0:01:16.680 --> 0:01:19.600 The hazen smoke from those fires in Quebec and Ontario 0:01:19.720 --> 0:01:23.800 will return today and tomorrow. Our meteorologist Rob Carolyn tells 0:01:23.840 --> 0:01:26.680 us a low pressure system over Atlantic Canna is going 0:01:26.720 --> 0:01:29.160 to start to pull away over the next few days. 0:01:29.600 --> 0:01:32.160 Shouldn't be as bad across the Tri state area. Visibilit 0:01:32.160 --> 0:01:33.880 would be a bit better, but there will be some smoke. 0:01:34.080 --> 0:01:36.200 And yesterday the Boston area escaped the smoke, and they 0:01:36.240 --> 0:01:38.760 should do so again today. And it definitely looks hazy 0:01:38.800 --> 0:01:39.840 in Washington today. 0:01:39.959 --> 0:01:42.520 Now the wildfire smoke is hazardous in partant because it 0:01:42.560 --> 0:01:47.520 contains tiny inhalible particles. The health experts recommend everybody limited 0:01:47.560 --> 0:01:50.360 their time outdoors now. The air quality index in New 0:01:50.440 --> 0:01:54.160 York City reached three hundred and ninety two yesterday. That's 0:01:54.200 --> 0:01:57.640 a level considered to be hazardous for all groups, including 0:01:57.720 --> 0:02:01.120 healthy people. For comparison's sake, two one hundred is the 0:02:01.120 --> 0:02:05.440 equivalent of smoking an entire pack of cigarettes. Breathing polluted 0:02:05.440 --> 0:02:09.080 air also linked to an increased risk for dementia, and 0:02:09.200 --> 0:02:11.919 Nathan and Karen being at work could be the safest place. 0:02:12.000 --> 0:02:15.760 Modern buildings, air handling and ventilation systems are operated to 0:02:15.880 --> 0:02:19.480 optimize the indoor air quality and use high efficiency filters. 0:02:19.639 --> 0:02:22.200 In New York, I'm John Tucker, Bloomberg Daybreak. 0:02:22.280 --> 0:02:24.680 All right, John, thank you. Well. Another major story we're 0:02:24.760 --> 0:02:28.640 following this morning takes us to politics. Former President Donald 0:02:28.639 --> 0:02:30.880 Trump has been notified that he is a target in 0:02:30.880 --> 0:02:34.720 a classified documents case. Bloomberg's Ed Baxter has the story. 0:02:35.000 --> 0:02:38.280 The notification in a letter from the Justice Department, saying 0:02:38.360 --> 0:02:41.720 that this is the result of the federal probe. Prosecutors 0:02:41.760 --> 0:02:44.640 have been building a case, including testimony from former aids, 0:02:44.639 --> 0:02:49.040 including former Chief of Staff Mark Meadows. Meadows has testified 0:02:49.080 --> 0:02:52.320 before federal grand juries in Washington and Miami for Special 0:02:52.360 --> 0:02:56.520 counsel Jack Smith. The Justice Department is required to notify 0:02:56.560 --> 0:03:01.480 individuals if they are a target based on somebstantial evidence 0:03:01.760 --> 0:03:04.919 linking that person to the commission of a crime. In 0:03:04.960 --> 0:03:07.359 San Francisco, I'm at Baxter, Bloomberg Daybreak. 0:03:07.440 --> 0:03:10.440 Okay, Ed, thank you. On Capitol Hill today, House Republicans 0:03:10.440 --> 0:03:13.440 had planned to vote on holding FBI Director Christopher Ray 0:03:13.600 --> 0:03:17.440 in contempt. Now that's been called off. House Oversight Chairman 0:03:17.560 --> 0:03:20.480 James Comber says the FBI has quote caved and is 0:03:20.560 --> 0:03:23.600 letting all members of his committee see a disputed document. 0:03:23.840 --> 0:03:27.320 Republicans claim the document links President Biden to wrongdoing by 0:03:27.320 --> 0:03:28.760 an unnamed foreign national. 0:03:29.160 --> 0:03:32.799 Meantime, Nathan President Biden has vetoted bill aimed at killing 0:03:32.840 --> 0:03:36.240 his high profile student dead relief program, and a White 0:03:36.240 --> 0:03:39.240 House video, the President said he'll keep fighting to make 0:03:39.280 --> 0:03:40.680 sure college is cheaper. 0:03:41.160 --> 0:03:43.560 Some of the same members of Congress who supported this 0:03:43.760 --> 0:03:47.080 bill voted through huge tax custs for corporations and the 0:03:47.120 --> 0:03:49.680 wealthy as well, But when it comes to hard working 0:03:49.720 --> 0:03:53.600 Americans trying to get ahead dealing with the student debt relief, 0:03:53.680 --> 0:03:55.040 that's where they drew the line. 0:03:55.120 --> 0:03:58.440 President Biden did not address some of the Congressional Democrats 0:03:58.480 --> 0:04:01.120 who broke with him on the bill. Senators Joe Manchin 0:04:01.160 --> 0:04:04.920 and Joe Tester and Democrat turned independent Kirsten Cinema join 0:04:05.000 --> 0:04:08.400 with Republicans to vote against the student debt relief measure. 0:04:08.560 --> 0:04:11.760 Well Karen uk. Prime Minister Rishi Sunek is in Washington 0:04:11.840 --> 0:04:14.000 later today, he takes part in a joint news conference 0:04:14.000 --> 0:04:16.440 with President Biden. That's on the heels of a meeting 0:04:16.480 --> 0:04:18.560 with House Speaker Kevin McCarthy yesterday. 0:04:18.680 --> 0:04:21.160 When our bond is stronger, the world is safer, and 0:04:21.320 --> 0:04:23.120 democracy grows further when we've. 0:04:23.000 --> 0:04:25.480 Stood together, I agree with you, the world hos benefited. 0:04:25.680 --> 0:04:27.920 And what we need to do now is figure out 0:04:28.120 --> 0:04:30.359 how do we make sure that relationship is strong to 0:04:30.400 --> 0:04:32.400 deal with the challenges of the future. I know that's 0:04:32.400 --> 0:04:35.040 what we're going to be talking about, but particularly strengthening 0:04:35.040 --> 0:04:36.919 our economies because that's what it's all about. 0:04:37.080 --> 0:04:39.520 And Prime Minister soon next joint news conference with President 0:04:39.560 --> 0:04:42.320 Biden is set for one thirty pm Eastern And. 0:04:42.320 --> 0:04:44.520 Return to Wall Street now, Nathan, and we've been speaking 0:04:44.520 --> 0:04:47.480 with some high profile names at the Bloomberg invest conference 0:04:47.560 --> 0:04:50.720 in New York. Bank of America CEO Brian moynihan tells 0:04:50.800 --> 0:04:54.880 us higher capital requirements will hit lending. That's after reports 0:04:54.920 --> 0:04:57.599 that large US banks may have to boost their capital 0:04:57.640 --> 0:05:00.320 by an average of twenty percent today. 0:05:00.960 --> 0:05:03.520 It's a fairly straightforward. If our capital ratios go up 0:05:03.520 --> 0:05:07.880 by hundred basis points, we basically you simply put you 0:05:07.880 --> 0:05:09.839 can't make about one hundred and fifty million dollars loans 0:05:10.320 --> 0:05:13.240 and because people say, well you have more capite, you 0:05:13.320 --> 0:05:15.039 make more loans. But if we took risk on that capital, 0:05:15.080 --> 0:05:16.920 we wouldn't have that capital ratio. So it has to 0:05:16.960 --> 0:05:19.560 be a riskless build. A capital can't be out there 0:05:19.600 --> 0:05:20.159 taking risk. 0:05:20.440 --> 0:05:23.360 Thank of America CEO Brian Lenahan spoke with a Bloomberg's 0:05:23.400 --> 0:05:25.560 David west End. Stay tuned for more of that interview 0:05:25.600 --> 0:05:27.480 coming up shortly on Bloomberg Daybreak. 0:05:27.680 --> 0:05:30.000 We also heard from Wherry Daly, O Bloomberg invest Karen, 0:05:30.040 --> 0:05:32.960 the billionaire founder Bridgewater Associates, thinks we're getting close to 0:05:33.000 --> 0:05:34.840 the end of FED interest rate hikes. 0:05:35.320 --> 0:05:37.800 The interest rates are now at a level that they're 0:05:37.839 --> 0:05:39.800 probably going to stay at, but they're probably not going 0:05:39.839 --> 0:05:42.400 to rise much from a year, and there's tightness and 0:05:42.440 --> 0:05:45.839 the consequences of that are going to be a weaker 0:05:46.000 --> 0:05:47.720 economy going forward. 0:05:48.040 --> 0:05:50.640 Ry Dalio predicts the US economy will get weaker from here. 0:05:50.720 --> 0:05:53.520 Catch the full conversation and all our best interviews each 0:05:53.600 --> 0:05:55.920 day on the daily Bloomberg Talks podcast. 0:05:56.360 --> 0:05:58.760 Nathan. We also caught up with Kim Kardashian. She was 0:05:58.800 --> 0:06:01.440 at the Super Return Conference in Berlin, the reality TV 0:06:01.560 --> 0:06:04.680 starter an entrepreneur, presented her debut private equity fund to 0:06:04.720 --> 0:06:07.960 a crowd of curious investors, and she spoke with David Rubinstein. 0:06:08.600 --> 0:06:14.960 I'm honestly most looking forward to my relationships with the founders. 0:06:15.279 --> 0:06:18.080 I love hearing people's stories and hearing what their magic 0:06:18.360 --> 0:06:22.320 sauces behind their company and why they wanted to start 0:06:22.360 --> 0:06:25.000 the company that they did, and what their vision is 0:06:25.040 --> 0:06:26.599 and just hope that I can help that. 0:06:26.920 --> 0:06:30.240 And Kim Kardashian's private equity fund, Sky Partners, is targeting 0:06:30.320 --> 0:06:33.440 up to twelve investments, each requiring anywhere from one hundred 0:06:33.440 --> 0:06:35.480 to five hundred million dollars of equity. 0:06:38.760 --> 0:06:39.920 And you take a look at some of the other 0:06:39.960 --> 0:06:42.000 stories making news in New York and around the world. 0:06:42.040 --> 0:06:45.400 We're joined by Bloomberg's Michael Barr. Good morning, Michael, Good morning, Nathan. 0:06:45.480 --> 0:06:49.719 Germany blame Russian President Vladimir Putin for the destruction of 0:06:49.800 --> 0:06:53.360 the Kakova Dam in southern Ukraine. Germany was joined by 0:06:53.400 --> 0:06:56.880 other European NATO members and denouncing it as a war crime. 0:06:57.200 --> 0:06:59.320 The US has yet to make an assessment on what 0:06:59.480 --> 0:07:03.800 caused them to collapse. State Department spokesman Vedant Patel says, 0:07:04.080 --> 0:07:06.839 while it is still trying to figure out what happened, 0:07:07.160 --> 0:07:10.360 the US government is mobilizing humanitarian resources. 0:07:10.640 --> 0:07:14.480 I'm certainly not going to get into internal assessments, but 0:07:14.680 --> 0:07:16.640 I will note that we continue to be in close 0:07:16.720 --> 0:07:22.240 touch with Ukrainian authorities on providing assistance to the civilians displaced, 0:07:22.240 --> 0:07:26.360 as well as continuing to assess what transpired. 0:07:26.720 --> 0:07:30.400 Ukrainian authorities are Russian supplies of drinking water to areas 0:07:30.440 --> 0:07:34.440 affected by flooding from the collapse dam. Supreme Court justices 0:07:34.520 --> 0:07:39.560 and other federal justices release their annual reports disclosing paid travel, 0:07:39.880 --> 0:07:45.440 outside income, investments, significant gifts, and the source of spousal income. 0:07:45.840 --> 0:07:49.360 Clarence Thomas and Samuel Alito have asked for an extension, 0:07:49.480 --> 0:07:52.880 which means their filings won't arrive until after the end 0:07:52.920 --> 0:07:56.080 of the term. President Joe Biden has invited thousands of 0:07:56.280 --> 0:08:00.720 LGBTQ individuals to the White House today to celebrate Pride Month. 0:08:01.080 --> 0:08:04.920 Biden plans to announce new initiatives to protect communities from attacks. 0:08:05.320 --> 0:08:07.360 White House spokesperson Karine Jean Pierre. 0:08:07.520 --> 0:08:11.120 We believe that not only does this community need to 0:08:11.160 --> 0:08:14.080 be celebrated and continue to be celebrated, as he's done 0:08:14.160 --> 0:08:17.560 many times before in this past two years. But we 0:08:17.600 --> 0:08:20.400 also need to make sure that we let the community 0:08:20.600 --> 0:08:23.160 know that the President has their back and we're going 0:08:23.200 --> 0:08:24.400 to continue to fight for them. 0:08:24.680 --> 0:08:28.520 White House spokesperson Karine Jean Pierre is the first openly 0:08:28.600 --> 0:08:31.880 gay press secretary. It's the next chapter in the battle 0:08:31.880 --> 0:08:34.040 over the flood of migrants to New York City and 0:08:34.200 --> 0:08:37.840 Upstate counties. The Big Apple sued thirty upstate in Long 0:08:37.840 --> 0:08:42.400 Island Counties for issuing executive orders blocking local hotels and 0:08:42.520 --> 0:08:47.120 motels from contracting to house migrants sent from the city. 0:08:47.480 --> 0:08:49.840 New York Mayor Eric Adams says the suit is aimed 0:08:49.840 --> 0:08:55.040 at ending xenophobic bignitry. Meanwhile, Mayor Adams plans to direct 0:08:55.040 --> 0:08:59.800 a cumulative sixty billion dollars of contractual work to minority 0:08:59.840 --> 0:09:03.160 and women owned businesses by twenty thirty. The goal is 0:09:03.240 --> 0:09:06.199 requiring the city to more than double as annual rate 0:09:06.240 --> 0:09:10.760 of contracts to underrepresented communities. Global News twenty four hours 0:09:10.800 --> 0:09:13.600 a day, powered by more than twenty seven hundred journalists, 0:09:13.640 --> 0:09:16.160 nantilists and over one hundred and twenty countries. Him Michael Barr, 0:09:16.240 --> 0:09:17.000 this is Bloomberg. 0:09:17.080 --> 0:09:24.400 Nathan, thanks Michael time for the Bloomberg Sports update. For that, 0:09:24.400 --> 0:09:26.600 we bring in John Staneshauer. All right, anything Game. 0:09:26.480 --> 0:09:28.920 Three of the NBA Finals eating Miami, and some triple 0:09:29.040 --> 0:09:32.800 double history. Denver's Nicola Jokis and Jamal Murray first teammates 0:09:32.840 --> 0:09:34.800 to both have them in the Finals game. But more 0:09:34.840 --> 0:09:37.800 than that, they're the first teammates in any NBA game, 0:09:37.880 --> 0:09:41.640 regular or postseason to both have triple doubles and both 0:09:41.679 --> 0:09:44.360 score at least thirty points. Jokid score thirty two at 0:09:44.400 --> 0:09:47.280 twenty one rebounds. Murray went for thirty four, got his 0:09:47.400 --> 0:09:49.959 tenth board with nine seconds left. They both had tennis. 0:09:50.000 --> 0:09:53.080 Says Denver, Meat the heat one oh nine ninety four 0:09:53.120 --> 0:09:54.719 and leading the series now two to one. Now that 0:09:54.800 --> 0:09:57.400 shot fifty one percent, the heat only thirty seven. Denver 0:09:57.520 --> 0:10:01.360 was plus twenty five in rebound. Game four tomorrow, another 0:10:01.440 --> 0:10:03.600 loss for the Mets, second night in a row in Atlanta, 0:10:03.600 --> 0:10:05.760 where they had a four to one lead sixth inning, 0:10:06.120 --> 0:10:08.480 Braves again came back, won seven to five on a 0:10:08.600 --> 0:10:11.439 Michael Harris to run homer in the eight off Adam Ottavino. 0:10:11.520 --> 0:10:14.080 The Mets have lost five in a row. Yankees in 0:10:14.120 --> 0:10:17.480 White Sox Air Quality Now doubleheader today starting at four. 0:10:17.559 --> 0:10:19.760 Rory McElroy t he's off today at the Canadian Opened. 0:10:20.160 --> 0:10:24.240 His first public reaction to the PGA Live merger. McElroy 0:10:24.280 --> 0:10:27.160 had been the most outspoken against lib which he says 0:10:27.160 --> 0:10:29.600 he still hates and he admits to a feeling of 0:10:29.600 --> 0:10:32.800 being a sacrificial lamb, but he said the merger was 0:10:32.880 --> 0:10:34.120 somewhat inevitable. 0:10:34.440 --> 0:10:37.880 PIF and the Saudeas want to spend money in the 0:10:37.880 --> 0:10:40.840 game of golf. It is they they want to do 0:10:40.880 --> 0:10:46.360 this and they weren't going to stop. So Hi, can 0:10:46.400 --> 0:10:47.920 we you know the thing for me and this is 0:10:48.160 --> 0:10:50.400 one thing that I've always thought about, how can we 0:10:50.480 --> 0:10:52.640 get that money into the game but use it the 0:10:52.679 --> 0:10:53.000 right way. 0:10:53.080 --> 0:10:56.400 Mcklroy supported in BATTLEPGA Commissioner Jay Monahan. They'll play the 0:10:56.400 --> 0:10:59.600 women's semifinals today at the French Open. Lionel Messi will 0:10:59.600 --> 0:11:01.920 play Angel League Soccer in Miami. 0:11:02.160 --> 0:11:03.160 John stash Ellen. 0:11:03.000 --> 0:11:04.800 Bloomberg Sports. 0:11:06.640 --> 0:11:09.640 From coast to coast, from New York to San Francisco, 0:11:09.960 --> 0:11:14.040 Boston to Washington, d C. Nationwide on Syrias Exam, the 0:11:14.080 --> 0:11:16.760 Bloomberg Business Appen Bloomberg dot Com. 0:11:16.840 --> 0:11:22.160 This is Bloomberg Daybreak, Good morning, I'm Nathan Hagar. Millions 0:11:22.200 --> 0:11:25.880 of Americans are waking up this morning following visions of 0:11:25.920 --> 0:11:32.160 apocalyptic orange skies. Wildfires from Canada have sent smoke billowing 0:11:32.320 --> 0:11:35.679 across the Northeast, and air quality warnings have been up 0:11:35.720 --> 0:11:39.920 from Massachusetts through New York City, all the way into Washington, 0:11:40.040 --> 0:11:43.440 DC and beyond. So how much longer can this last? 0:11:43.480 --> 0:11:47.080 When will it end? Bloomberg Meteorologist Rob Carolyn is here 0:11:47.080 --> 0:11:50.360 with us Live to help answer some of those questions. Rob, 0:11:50.440 --> 0:11:53.960 you know it's bad when the sky's orange during the day. 0:11:54.240 --> 0:11:56.559 Is it gonna be as bad in the East. 0:11:56.280 --> 0:11:59.600 Coast as it was yesterday? Well, Nathan, the worst of 0:11:59.640 --> 0:12:01.680 it yes was in the Tri State area. That's where 0:12:01.720 --> 0:12:04.439 we saw those visibilities under two miles in very heavy smoke, 0:12:04.480 --> 0:12:07.320 and the visibility is pour this morning around southern New York. 0:12:07.400 --> 0:12:10.120 I'm looking at visibilities right now under two miles from 0:12:10.120 --> 0:12:12.720 the Hudson River Valley across Long Island and into the city. 0:12:12.800 --> 0:12:15.439 So it gets a little bit better as the day 0:12:15.480 --> 0:12:17.200 goes on in New York. Some of the smoke's going 0:12:17.280 --> 0:12:19.440 to disperse, but it's certainly going to be hazy much 0:12:19.440 --> 0:12:21.600 of the Boston area yesterday missed out on it. We 0:12:21.600 --> 0:12:24.360 had visibilities in ten miles. There was some smoke, but 0:12:24.400 --> 0:12:26.400 certainly nothing like what we saw in New York City. 0:12:26.600 --> 0:12:28.000 We did have quite a bit of haze in the 0:12:28.040 --> 0:12:31.480 district in Baltimore that continues today. The big problem is 0:12:31.520 --> 0:12:34.040 we are stuck in a stagnant weather pattern. Low pressure 0:12:34.120 --> 0:12:37.400 is stalled over eastern New England and eastern Canada. That's 0:12:37.440 --> 0:12:40.360 what's pulling all of this smoke out of Quebec and Ontario, 0:12:40.480 --> 0:12:43.760 and it will continue to do so today, tomorrow and 0:12:43.840 --> 0:12:46.320 into Saturday. It looks like a system coming out of 0:12:46.320 --> 0:12:48.320 the western United States is going to help kick this 0:12:48.400 --> 0:12:50.680 low out and weaken it. So we'll start to see 0:12:50.720 --> 0:12:53.880 gradual improvement by Sunday in the air quality across the 0:12:53.920 --> 0:12:57.080 northeast Ohio River Valley in mid Atlantic region. It definitely 0:12:57.080 --> 0:12:59.360 gets better into next week as the weather pattern starts 0:12:59.400 --> 0:12:59.959 to change. 0:13:00.160 --> 0:13:03.679 Is a stalled weather pattern like this unusual, rob I mean, 0:13:03.720 --> 0:13:07.000 when you see scenes like this, the words climate change 0:13:07.240 --> 0:13:10.000 immediately come to mind. Is that something that's on your radar? 0:13:10.559 --> 0:13:12.719 Well, we've been in a very blocky pattern so far 0:13:12.760 --> 0:13:15.360 the spring. Nathan just a week ago we were sitting 0:13:15.440 --> 0:13:18.000 underneath high pressure and we had sunshine for eight days 0:13:18.000 --> 0:13:21.360 over the northeastern United States. It's not unusual to see 0:13:21.360 --> 0:13:23.679 the blocks develop in the spring and continue into the 0:13:23.720 --> 0:13:26.760 early summer. What seems to be driving this block is 0:13:26.800 --> 0:13:29.480 the fact that we've got the Greenland ice sheet melting 0:13:29.559 --> 0:13:32.360 more than normal that has been forming a cold pool 0:13:32.360 --> 0:13:35.800 of water south of Greenland. Right now, that cold pool 0:13:35.800 --> 0:13:37.800 of water is closer to the East coast than it's 0:13:37.840 --> 0:13:40.080 been the last couple of springs and summers, and that's 0:13:40.120 --> 0:13:43.240 what's been leading to this persistent pattern of upper level 0:13:43.280 --> 0:13:46.960 low pressure system developing over the Northeastern United States at 0:13:46.960 --> 0:13:49.160 times through the spring and early summer. So that could 0:13:49.240 --> 0:13:51.880 be attributed to the changes that we're seeing with the 0:13:51.920 --> 0:13:53.319 climate in the northern hemisphere. 0:13:53.360 --> 0:13:56.120 Just thirty seconds left, Rob, your advice for people how 0:13:56.120 --> 0:13:57.720 to deal with this smoke for this week? 0:13:58.040 --> 0:14:00.040 Well, the smoke yesterday in New York was on the 0:14:00.120 --> 0:14:02.760 president since the like the seventeen eighties, you'd have to 0:14:02.800 --> 0:14:05.560 go back that far into the climate pass to come 0:14:05.640 --> 0:14:08.480 up with something like this. I would say people with 0:14:08.559 --> 0:14:11.040 respiratory's distress stay inside. Those folks who have to go 0:14:11.080 --> 0:14:13.160 out and ninety five. Mass are probably a good idea 0:14:13.160 --> 0:14:15.800 in the Tristate area. You should be okay in Boston 0:14:15.840 --> 0:14:18.640 and VC today. Just don't do anything strenuous, especially if 0:14:18.679 --> 0:14:20.400 you suffer from respiratory distress. 0:14:20.680 --> 0:14:23.960 Really appreciate this, Rob. Thank you, Bloomberg Meteorologist Rob Carolyn. 0:14:24.000 --> 0:14:26.160 We're going to be checking back with you throughout the 0:14:26.160 --> 0:14:29.120 morning here on Bloomberg Daybreak. But we want to turn 0:14:29.200 --> 0:14:32.320 now from apocalyptic weather to the outlook from one of 0:14:32.360 --> 0:14:35.760 Wall Street's biggest banks. The United States has to be 0:14:35.800 --> 0:14:38.520 a beacon of stability and strength in the world. That's 0:14:38.560 --> 0:14:42.119 the word from Bank of America CEO and Chairman Brian moynihan. 0:14:42.240 --> 0:14:44.880 He's talking about the US economy in the wake of 0:14:44.920 --> 0:14:47.480 a drawn out debt ceiling battle and where he sees 0:14:47.600 --> 0:14:50.760 things going from here. One Hand sat down for a 0:14:50.800 --> 0:14:53.800 wide ranging interview with David weston Man at the Bloomberg 0:14:53.840 --> 0:14:56.400 invest Conference in New York. Let's listen to part of 0:14:56.440 --> 0:14:57.160 that conversation. 0:14:57.320 --> 0:14:59.720 Now, YEO, when I ask people, is this disruptive? And 0:14:59.800 --> 0:15:02.720 not all the experts tell me yes and no and yes. 0:15:02.800 --> 0:15:04.440 In the hand there's a lot of issuance, But no, 0:15:04.640 --> 0:15:06.840 everybody knew it was coming and so it may move 0:15:07.200 --> 0:15:10.240 sort of trading markets around, but fundamentally, the idea of 0:15:10.320 --> 0:15:13.560 the government was gonna run out of money was not 0:15:13.600 --> 0:15:15.720 something people were planning on. So we'll see. 0:15:15.880 --> 0:15:17.800 Does it put any kind of a crip in your 0:15:17.840 --> 0:15:20.360 ability to lend? I mean money has to come from somewhere. 0:15:20.800 --> 0:15:22.400 Well, there's a lot of money sitting at the FED, 0:15:22.440 --> 0:15:24.400 and you have a night repo facility and money funds 0:15:24.400 --> 0:15:26.560 has just been put back, and so the dynamics of 0:15:26.560 --> 0:15:28.560 how this all moves around is interesting. I don't think 0:15:29.680 --> 0:15:31.360 in the worry b it took deposits out of the 0:15:31.400 --> 0:15:35.480 banking system, but you know, there's I'm not sure people 0:15:35.480 --> 0:15:36.840 see that as a big issue. And by the way, 0:15:37.400 --> 0:15:39.560 the Treasury secretary, I think they said today they will 0:15:39.560 --> 0:15:42.760 do this on a non disruptive basis, because they don't. 0:15:42.920 --> 0:15:44.640 They just ran down to thirty nine billion. We're still 0:15:44.640 --> 0:15:46.200 able to pay the bills, so they don't need to 0:15:46.200 --> 0:15:47.880 get there tomorrow, and they'll build it up over time, 0:15:47.920 --> 0:15:49.400 but their goal is to get back in a more 0:15:49.440 --> 0:15:53.040 regular way. The best news about this whole dialogue is 0:15:53.240 --> 0:15:55.800 they've got an agreement that extends a period of time, 0:15:55.880 --> 0:15:58.080 so we shouldn't have to deal with this for a while, 0:15:58.120 --> 0:16:00.280 which is really critical because the United States has to 0:16:00.320 --> 0:16:02.720 be the beacon of stability strength in the world. And 0:16:02.800 --> 0:16:05.360 at times when this discussion is going on and you 0:16:05.400 --> 0:16:08.920 travel the world, everybody gets fixated on it because United 0:16:08.960 --> 0:16:11.760 States is the benchmark of benchmarks, and if it goes 0:16:11.840 --> 0:16:14.600 completely somehow accidentally, it's a real problem. And so they 0:16:14.760 --> 0:16:17.600 get all fixated all this sort of activity in the 0:16:17.680 --> 0:16:19.920 planning for it. What would happen in all our company? 0:16:20.200 --> 0:16:22.320 It just it would just be better if it didn't 0:16:22.320 --> 0:16:24.000 go on. But it's a political process, and. 0:16:24.440 --> 0:16:26.600 There are reports and I don't think it's unexpected anybody 0:16:26.600 --> 0:16:29.520 that there's going to be increase in capital requirements. If 0:16:29.560 --> 0:16:32.040 that goes forward, will it have any effect on your 0:16:32.080 --> 0:16:33.040 ability to make loans? 0:16:33.360 --> 0:16:37.320 There are multiple discussions which could get sort of pushed together. 0:16:37.400 --> 0:16:42.360 There's the standards for the final finalization of BASEL, which 0:16:42.400 --> 0:16:45.000 is this broad set of things that's going on. This 0:16:45.040 --> 0:16:47.440 stress test is going on that we forget about if 0:16:47.480 --> 0:16:50.280 that's going on also, and that result in some surprises 0:16:50.320 --> 0:16:53.280 the industry in terms of capital demands last year. And 0:16:53.320 --> 0:16:58.200 then and then there's the question of applying standards that 0:16:58.200 --> 0:17:00.880 applied to the g said banks the biggest bank broader 0:17:00.920 --> 0:17:03.080 in the platform because the size of some of the banks, 0:17:03.120 --> 0:17:05.120 and so all three of those things get mixed together 0:17:05.119 --> 0:17:06.760 a little bit. But you know, at the end of 0:17:06.800 --> 0:17:09.919 the day, it's a fairly straightforward. If our capital ratios 0:17:09.960 --> 0:17:13.280 go up by one hundred basis points, we basically, you know, 0:17:13.720 --> 0:17:17.440 simply put, you can't make about one hundred fifty million 0:17:17.480 --> 0:17:21.359 dollars a loans. And because people say, well, you have 0:17:21.359 --> 0:17:23.080 more capital, make more loans. But if we took risk 0:17:23.160 --> 0:17:25.040 on that capital, we wouldn't have that capital ratio. So 0:17:25.160 --> 0:17:27.720 it has to be a riskless build. A capital can't 0:17:27.720 --> 0:17:29.520 be out there taking risk. It's the only thing you 0:17:29.600 --> 0:17:31.919 really do is leave in the cash or buy treasury securities. 0:17:32.560 --> 0:17:36.040 And that's not a very productive use of money. So 0:17:37.200 --> 0:17:39.960 and if you had it, and that's the problem. And 0:17:40.000 --> 0:17:41.960 so every time capital goes up, there's a there's a 0:17:42.000 --> 0:17:42.960 countervailing effective. 0:17:43.000 --> 0:17:43.919 It impacts lending. 0:17:44.359 --> 0:17:46.600 So I see, actually a survey was done in this 0:17:46.720 --> 0:17:49.440 room of the likeli overcession in Q one of twenty 0:17:49.440 --> 0:17:51.000 th eighty four, and it looks like, what is that 0:17:51.040 --> 0:17:53.359 sixty five percent of the people agree with your research. 0:17:53.400 --> 0:17:56.200 Isn't that good to know you've got kind of ratification there. 0:17:56.480 --> 0:17:59.280 One thing we always careful if somebody educated me once 0:17:59.320 --> 0:18:02.159 that the four action recession by economists is always like 0:18:02.200 --> 0:18:04.879 fifteen or twenty percent, so and above that means that 0:18:04.920 --> 0:18:05.520 they're convinced. 0:18:05.560 --> 0:18:08.679 So when we talk about costs, what about headcount? I 0:18:08.680 --> 0:18:10.240 know you said that it's not so much you're laying 0:18:10.280 --> 0:18:12.440 officer's not hiring as many as you were a year ago. 0:18:12.760 --> 0:18:15.080 This goes back to economic who and I even talk 0:18:15.160 --> 0:18:18.520 to customers. So last May we hired thirty three thousand people. 0:18:18.520 --> 0:18:21.040 Excuse me, this May we hired you know, six seven hundred. 0:18:21.119 --> 0:18:23.640 And that's all because the turnover rate fell because last 0:18:23.680 --> 0:18:25.560 year were in the middle of great recognation and now 0:18:25.560 --> 0:18:29.159 it's completely different. So we went from twelve percent turnover 0:18:29.200 --> 0:18:30.880 in the company, which is sort of the long term 0:18:30.920 --> 0:18:33.360 level we're at pre pandemic, down to six, up to fifteen, 0:18:33.400 --> 0:18:35.919 and now back down getting close to six. So we 0:18:35.960 --> 0:18:37.480 don't have to hire as many people, yet we keep 0:18:37.480 --> 0:18:38.520 managed to head count down. 0:18:38.680 --> 0:18:40.439 More broadly, do you think the job marker is a 0:18:40.440 --> 0:18:42.080 bit softer than what the FED realizes. 0:18:42.400 --> 0:18:45.199 I think if you talk to employers today in a 0:18:45.240 --> 0:18:49.800 technology spaces there's always specialized things like welders in certain 0:18:49.840 --> 0:18:54.159 businesses and high and manufacturing help explosion that was just 0:18:54.200 --> 0:18:58.879 having been out there. But in general it's much less 0:18:59.080 --> 0:19:01.479 tight than it was in the spot market and that's 0:19:01.520 --> 0:19:03.719 why the curt rates going down. All that stuff. You 0:19:03.800 --> 0:19:05.720 see it in the amount of hires and you know, 0:19:05.760 --> 0:19:09.360 so job postings are still high. I'm not sure CEOs 0:19:09.359 --> 0:19:11.360 that I talked to are pushing people to fill those 0:19:11.359 --> 0:19:13.440 as much as film when you have to, and that 0:19:14.359 --> 0:19:17.120 has a dampening effect on the labor market that won't 0:19:17.119 --> 0:19:20.440 show up any agorams. Employment still at you know, three 0:19:20.480 --> 0:19:22.959 point seven percent of employment is still very strong. And 0:19:23.000 --> 0:19:26.160